In 2024, 44,000 square meters of new, high-quality office space will be built in free zones in Dubai as a response to the city’s soaring demand.
According to a report by commercial real estate company CRC, there will be new construction or expanded office spaces at 6 Falak in Internet City and Sweid One in Jumeirah Lakes Towers (JLT).
After the addition of 92,000 square meters of gross leasable area in 2023, the total stock size now stands at 9.2 million square meters.
According to the report, the market exceeded expectations with a rise in office transactions and values, which shows persistent investor confidence. Further growth is anticipated in 2024 due to rising demand, a growing population, and a healthier market.
The average price of office properties in Dubai in 2023 was AED 1,120 per square foot, which was up from AED 1,006 in 2022 but still slightly below the previous high of AED 1,198 per square foot in 2014. The value of office space sold in Dubai in 2023 was AED 4.78 billion (AED 1.3 billion).
After selling 12,215 units for AED 91 billion in total in 2023, the city’s commercial real estate market saw an increase from AED 52.1 billion and 9,724 transactions in 2022.
CRC said: “In contrast to post-pandemic projections and the prevalent tendency of businesses embracing remote or hybrid work arrangements, there was a notable 44% increase in buyer leads for office purchases.”
According to CRC, regulations about visas per square foot of office space are contributing to the rising demand for office space in Dubai.
“As companies grow and recruit more employees, they also require larger premises to cover the visa allowances in proportion to the size of their offices,” CRC’s commercial report for 2023 said.
JLT, Business Bay, Sheikh Zayed Road, Motor City, and Barsha Heights were the top office sales locations. The top three were the same for commercial leasing; Tecom and Media City ranked fourth and fifth, respectively.